TIOL-DDT 467 · Wednesday, 11 October 2006 · story 6 of 8

Valuation of physician’s sample – High Court upholds Board Circular

Board had in Circular No. clarified that valuation of free samples has to be done under Rule 4 based on the value of such goods that is the main goods. The Bombay High Court has upheld this circular. Suppose a product is to be launched and before that samples are given to the doctors. There are no such goods. Suppose after the feedback from the doctors, the product is dumped; Then what is the value of the samples? The Revenue had taken a case to the Tribunal with the plea that samples are packed in better containers and so should be valued at a rate higher than that of the main product. We bring you the High Court order today. See our Breaking News.

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